What You Need to Know About the Mortgage Process [INFOGRAPHIC]Some Highlights: Many buyers are purchasing a home with a down payment as little as 3%. You may already qualify for a
Manufactured Home Buying Tips
Manufactured Home Buying Tips
The United States Census Bureau calculated the average price per square foot for a manufactured home in 2012 to be $41.97.
Maybe it time to say a bundle. Compare that to the $86.30 per square foot for a traditional stick built home and you'll see why the homes are such a great choice.
Buying a manufactured home is a great option for anyone wanting a custom home at an affordable price.
Once you have made the decision to purchase a new home, the next step will be choosing the builder. There are approximately 70 builders in the US, offering more than 300 different models. You will want to be especially careful to notate the parent company of the builders. Mergers and acquisitions are a regular occurrence in the manufactured home industry.
28 Terms Every Manufactured Home Buyer Should Know
Knowing what the terms mean can help you better understand the process and gain an upper hand in negotiations.
Annual Percentage Rate (APR )
The APR is the yearly interest rate or cost of a loan.
The selling price of a home before any upgrades are added.
Don’t confuse this with the invoice price that has the upgrades added.
Chattel loans are defined as loans made on movable items such as an automobile, a computer, or a manufactured home.
The act of convincing a home buyer to sign the sales agreement. Some dealers want to close the sale on the buyer’s first visit.
A consumer should never sign anything until they have researched at least 3 different dealers and shopped for financing.
An employee at a dealership whose exceptionally talented in persuasion and whose only job is to convince the home buyer to sign the sales agreement.
Usually 5-10% of the home’s price that is paid before the home is order or at the time the contract is signed.
A document that provides detailed construction information about the home. Usually located in a kitchen cabinet.
A home on the dealers lot. It is usually sold at a reduced price.
A third party holds payment until all conditions of an agreement is met.
The ending value of the home after subtracting the payoff from the total amount financed
The interest and fees charged on a financed home.
The abbreviation for finance and insurance.
Fixed Rate Mortgage
A loan with an interest rate that never changes. Your payments will be the same amount through the life of the loan.
Floor Planning or Flooring
The homes on a dealerships lot are owned by a bank or financial institution and not the dealer.
Gross Back End
Profit the dealership makes when a buyer finances and adds insurance to the payment plan. It is recommended that you keep insurance separate from financing.
Gross Front End
The total profit the dealer will make from the sale of the home.
Refers to the National Manufactured Home Construction and Safety Standards
Kickback, Hold Back, or VIP Money
The amount that the builder automatically adds to a manufactured homes invoice to ensure the dealer will receive a minimum profit. It is often hidden from the consumer.
A manufactured home and land bought together, often financed in with one loan. Setup and installation are usually included.
Letter of Commitment
A letter from a financial institution agreeing to loan a set amount for a specific home or property. It’s advisable that a buyer get their own financing before shopping for a home.
Amenities added to the home at the buyers request. Also known as upgrades. Be weary of some upgrades.
The amount that a dealer pays a contractor or crew to have the home transported and installed. Watch for markups on this amount.
A potential home buyer that is mostly concerned with the monthly payment amount and not the total price or the length of the finance plan. Don't be a payment buyer!
Columns of concrete blocks or metal supports that are spaced equally under the home for support.
An agreement detailing the terms and conditions of a manufactured home purchase. Do not sign this contract unless you understand everything completely and never sign anything that will be filled in later.
Land modifications needed to prepare the space for a home to be placed.
When an owner owes more than the value of the home. This occurs often when buyers add extras to the financing such as insurance and taxes.
source About .com http://manufacturedhomes.about.com/od/Manufactured-Homes/fl/28-Terms-Every-Manufactured-Home-Buyer-Should-Know.htm
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